Pension Despair
Public Pensions Have a $1 Trillion Problem
show comments
  • Tom Chambers

    I see that Mr. Dirksen was also a Congressman earlier in his career, but I’m fairly sure he was Senator Dirksen when he made this quip.

  • Marty Keller

    “Markets have been performing extremely well over the past few years, and
    because pension plans smooth out sharp changes over a five-year period,
    the 2012 data still include numbers from the height of the recession.
    The good numbers from recent years will soon catch up with the
    reporting, making things look a little better for many states.” We all better pray that the “markets” aren’t currently riding another major bubble.

    • Pete

      That’s right. So what happens when the over valued stock market tanks????

  • qet

    I read in the last couple of days where US corporations are holding a total of nearly $1T of cash in offshore accounts. So. . . . . . . . . . .

    • Gary Hemminger

      Let’s just take it from the US corporations that managed their businesses well and give it to public pensions that didn’t. Now there is really a bad idea. Talk about creating a moral hazard. No the answer is for politicians that caused this problem to go to jail.

      • qet

        I know. But can you imagine the temptation? Can’t you just see some of them sitting there, looking at how Cyprus helped itself to its depositors’ accounts, how various “surcharges” on the rich are in play everywhere, and thinking “what could be the harm in a one-time extraordinary appropriation of all that cash that would solve the pension problem”? I am being sardonic, of course. But I wouldn’t put it past them.

  • Andrew Allison

    Reality check: the DJIA is just 17% higher than its pre-recession peak in October 2007, 43% higher than the previous one 14 years ago, and appears poised for a correction. The cumulative effect of CPI inflation since 2000 is 36% (http://www.usinflationcalculator.com/), for a net total return of 7%.

© The American Interest LLC 2005-2017 About Us Masthead Submissions Advertise Customer Service
We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.